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oh eer

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  • 19-01-2010 7:58pm
    #1
    Sponge Bob
    Banned (with Prison Access) Posts: 25,234 ✭✭✭✭


    Hmmm

    I was told that this was done for eircom or aer lingus ( or both)

    http://www.finance.gov.ie/documents/publications/statutoryinstruments/2010/si42010.pdf

    Classes of defined benefit schemes excluded, etc.

    13. The Minister shall exclude a pension scheme where, in the opinion of the
    Minister, it is a defined benefit scheme in respect of which—
    (a) the trustees of that scheme and the employer and the business concerned,
    or any of them, had contrived a pension deficit or employer
    insolvency solely or substantially for the purpose of gaining access to
    the Scheme, or
    (b) any actions by the trustees of that scheme and the employer and the
    business concerned, or any of them had—
    (i) wilfully contributed, whether by act of commission or omission, to
    that scheme’s deficit, or
    (ii) wilfully contributed to the employer’s insolvency.


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    #2
    lucernarian
    Registered Users Posts: 9,235 ✭✭✭lucernarian


    Nice find there. I wonder what SingTel will make of their new purchase...


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    #3
    Sponge Bob
    Banned (with Prison Access) Posts: 25,234 ✭✭✭✭Sponge Bob


    To_be_confirmed wrote: »
    Nice find there. I wonder what SingTel will make of their new purchase...

    Singtel only have to figure out how to get €100m or so back from a company with a turnover of €2bn a year and then they are quids in. Surely that should not be beyond them :)

    The pension deficit is between 5x and 10x what Singtel paid for eircom but as it predates them they only need to concentrate on not making it worse by commission.


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    #4
    lucernarian
    Registered Users Posts: 9,235 ✭✭✭lucernarian


    €100 million is almost a drop in the water compared to the deficit. Would the minister be of a different opinion because of a piecemeal amount? Also, their actual debt is much larger again and €2 billion revenue per year is not so rosy if they do anything more than service that debt. Goodbye meaningful investment perhaps?? *takes off devil's advocate hat*.


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    #5
    clohamon
    Registered Users Posts: 1,789 ✭✭✭clohamon


    Sponge Bob wrote: »
    Hmmm

    I was told that this was done for eircom or aer lingus ( or both)

    I don't understand what you mean. Are you implying that Aer Lingus or Eircom will become insolvent in the near future ?


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    #6
    Sponge Bob
    Banned (with Prison Access) Posts: 25,234 ✭✭✭✭Sponge Bob


    clohamon wrote: »
    Are you implying that Aer Lingus or Eircom will become insolvent in the near future ?

    eircoms pension fund is in deficit by €400-€500m. Their entire group capex in a year is nearer €300m, anyway have a look.

    http://www.businessworld.ie/livenews.htm?a=2542498;s=rollingnews.htm
    "The rating action reflects our opinion that various financial covenants present in ERCIF's [Eircom] senior secured facilities could be breached over the coming three to four quarters," SP analyst Xavier Buffon said.


    "We think that the range of feasible measures to address this situation could be narrowed, and the risk of breach increased, by the current challenging combination of ongoing revenue pressures, tough competition and regulatory scrutiny, restructuring measures and fixed outlays required to preserve operating margins and market positions, and possible future cash contributions to fund the pension deficit."


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